THE premier of Australia’s mining capital has cautioned African nations against succumbing to pressure from resources companies for subsidies.

It was a key message from West Australian Premier Colin Barnett to the Paydirt Africa DownUnder conference in Perth, where a record 20 African ministers are attending the annual event.

Mr Barnett said determining exactly what role governments should play in mining was still being refined in WA, which has been administering the sector for the past 120 years.

But one thing was certain: subsidies were not a good idea.

WA previously had some subsidy arrangements in place but not anymore, he said.

“It’s not the way to go,” the Liberal leader told reporters.

“The message I was giving to developing African nations is they should resist that.

“Often international companies will put pressure on small countries that they should provide concessions and even subsidise arrangements.

“I don’t think those countries are in a position to do that and I don’t think they should do it.”

He earlier told delegates he’d had to stand up to major global companies and economies “about getting quality development and fair return”.

“Don’t get spooked by the companies: if the resources are there, they will come,” Mr Barnett said.

The Premier said the African ministers could learn a lot from Australia’s now canned mining tax.

“Certainly, I advocate that they probably resist mining taxes and the like and certainly make sure that they have a simple, easily administered royalty system in place so that all minerals, all petroleum extracted is paid for.

“Not to overcharge but to set fair prices that attracts and retains investment.

“The ministers are most interested in that because it hasn’t been done all that well in the past.”

At a meeting with the African ministers on Thursday, he’ll also discuss WA’s state agreement system, which lays out the rights and obligations of companies and the government in big mining projects that require supporting infrastructure such as rail and ports.

Other topics will include mine safety and environmental rehabilitation.